Daily Telegraph report
Whitehall probes GKN's £1bn helicopter sale
The Government is investigating GKN's £1billion sale of its 50% stake in helicopter company Agusta Westland on grounds of national security.
The inquiry is the second time that the ministers have issued a European Intervention Notice in a takeover under the 2002 Enterprise Act.
Jacqui Smith, trade and industry minister, yesterday said she was asking the Office of Fair Trading to investigate the sale to Italy's Finmeccanica.
The notice will require the OFT to report back to Ms Smith on any national security concerns raised by the deal by October 4, after which ministers will decide whether to approve it.
The proposed £1.06billion acquisition is already being examined on competition grounds by the European Commission.
GKN's shares closed down 4.75 at 217p. A spokesman said: "This is a part of the regulatory approvals process which we said the deal would have to go through at the time we made the announcement."
GKN announced in May that it was planning to sell its 50% stake in Agusta Westland to Italy's Finmeccanica, the holder of the remaining 50% share.
The news signalled the end of Britain's direct involvement in the world helicopter industry.
The only other such notice was issued in April after the United States' General Dynamics offered to buy British tank-maker Alvis for £309m. The deal was eventually trumped by a £355m cash counter-bid from BAE Systems.